diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 90349e424c..a46ce597f6 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3245.0.0+nightly-20220520-0155
-FLATCAR_VERSION_ID=3245.0.0
-FLATCAR_BUILD_ID="nightly-20220520-0155"
-FLATCAR_SDK_VERSION=3245.0.0+nightly-20220520-0155
+FLATCAR_VERSION=3246.0.0+nightly-20220521-0155
+FLATCAR_VERSION_ID=3246.0.0
+FLATCAR_BUILD_ID="nightly-20220521-0155"
+FLATCAR_SDK_VERSION=3246.0.0+nightly-20220521-0155
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index 2eef22e2ca..30ea06e531 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 2eef22e2ca66b08c0e7bb6c4a9039a06ea7d6161
+Subproject commit 30ea06e531098349bc5aa40fa791983db7fac96f